Budget Resolutions and Economic Situation

Debate between Guy Opperman and David Mowat

Wednesday 19th March 2014 Commons Chamber

[David Mowat]

I have not had a chance to read the report. According to the Red Book, the cost of that allowance will be £1.2 billion next year, an awful lot of money. I will not respond to the hon. Lady’s point about growth, because my point was that the Chancellor has introduced medium-term structural measures into the economy, which is a responsible approach.

The fourth test is whether this is a radical and reforming Budget. The measures on pensions, ISAs and particularly annuities are genuinely reforming, genuinely radical and potentially genuinely transformative.

I want to talk a bit about all those things, but first I want to say something about the support the Chancellor has been able to give the Foundation for Peace—the peace centre in Warrington. There was an issue to address, as it was funded from the lottery and that funding will run out in April. The work the centre does for victims, both of the troubles in Northern Ireland and of 7/7, was under threat, and the support that has now been given will fix that. It is also true—I know Colin and Wendy Parry agree with this—that the funding must be put on a sustainable basis, as the centre needs to do more projects over time with the Home Office and the Foreign Office and all that goes with that.

[Guy Opperman]

I totally endorse what my hon. Friend said. Does he also welcome the use of the LIBOR funds to support the scouts, girl guides and emergency services, and the waiving of the VAT for air ambulances, which is much welcomed after a long campaign in this House?

[David Mowat]

I support that, and I just reiterate the words the Chancellor used: those who have the worst values in our society are being used to fund those who have the best values in our society. That just about sums it up.

Regional Pay

Debate between Guy Opperman and David Mowat

Wednesday 20th June 2012 Commons Chamber

[Guy Opperman]

I also believe that regional pay is divisive and manifestly unfair. Members who read The Daily Telegraph today—obviously, that includes many on the Opposition Benches—will know that it has criticised me personally for leading the opposition to these divisive plans. It must be very rare to be criticised by The Daily Telegraph and praised by the hon. Member for Sedgefield (Phil Wilson) all on the same day. I was interested when I read on to find that its argument is that pay distortions are

“economically destructive. They make it harder for businesses in the regions to recruit workers at competitive wage rates and as a consequence they stifle enterprise.”

That is not what individual businesses, whether small or large, in my constituency and elsewhere in the north-east are saying to me, however.

This Government, like previous Governments in 2003 and 2007, are right to look at all potential options for boosting growth, and I have no difficulty with them referring the matter for consideration by the pay review body, but ultimately this will not find business support or create the prospect of business growth in the regions that we represent, and we should not support it if it becomes Government policy.

The majority of public sector workers in my region are doing their bit already. They are hard working, and along with the vast majority of my constituents they accept that the Government are right to reduce the deficit, to cut public sector spending, to reform public sector pensions, to freeze pay in some areas and to eradicate some of the non-jobs and excesses that we saw before 2010. That is accepted.

[David Mowat]

I agree with the thrust of my hon. Friend’s remarks. He cited the phrase “economically destructive”, but does he agree that what is also economically destructive is average public spending per head in London being 15% higher than in the north-west, and that if we wish to tackle the issue under discussion that would be a place to start?